LOL at Sharky. Every new leader in the VG industry has taken over in one generation. Magnavox developed Odyssey starting in 1966, and launched in 1972. Atari killed them with PONG overnight, and then led a second generation with 2600. Nintendo's first console recreated and expanded the industry, and they led a second generation. PSone took over and expanded the market, and Sony led a second generation. And all three companies were hugely profitable during their glory years. Microsoft taking over the high-end of the market in two generations while losing billions is pitiful in comparison.
Joelcool, great post. "Microsoft views Sony as hostile to their core market and dominant position in the PC industry." I don't know why people don't talk about MS in these terms more. Everything they do outside of Windows and Office is simply a defensive measure to make sure nothing ever takes over part of the PC market. Right now they're taking on Google, Apple and Sony all at once.
Of course MS is totally failing... Its obvious when Wii and PS2 are the leading consoles around the world that people prefer cheaper, dedicated devices. Sony's plan of using the VG market as a springboard towards the PC market was doomed to failure regardless of if MS entered the industry or not. Sony talked about PS2 as being a PC, and look how that turned out. Even if PS3 wasn't priced out of the market, and sold 100m consoles, it wouldn't have infringed on more of the PC market than PS2 did.
"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."
Satoru Iwata, Nintendo President. Only slightly paraphrased.
